Wednesday, June 10, 2009

Government Controls On Executive Compensation To Be Proposed

How far should the government go in regulating commerce?

One could argue that a lack of checks and balances led to the economic collapse on Wall Street. The people who were supposed to be the watchdogs, simply put, weren't overseeing things very well.

But is it possible in our zeal to correct this transgression that we can be moving too far in the other direction?

I'm certain that question will be raised - many times - as President Obama proposes greater oversight of executive compensation.

There's no question that the nation has soured on fat cats losing their investor's money but still taking home obscene bonuses in the process. But should the government really be regulating this?

Obama will make two proposals. One that gives shareholders greater control over executive compensation. The other which gives the Securities and Exchange Commission greater regulatory control over executive compensation.

I will withhold final judgment until I see exactly what the president has in mind. But there are basic philosophical questions about how far government should encroach into the affairs of private companies that should be answered as well.

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